CASES OF TERMINATING OPERATIONS OF FOREIGN TRADERS IN VIETNAM

Legal basis:

– Commercial Law 2005;

– Decree No. 07/2016/ND-CP.

Foreign traders mean traders established and making their business registrations according to the provisions of foreign laws or recognized by foreign laws. Foreign traders are entitled to set up their representative offices or branches in Vietnam and to establish in Vietnam foreign-invested enterprises in the forms provided for by Vietnamese law.

1. Termination of operations of foreign traders

Foreign traders shall terminate their operations in Vietnam in the following cases:

– Upon expiration of the operation duration stipulated in their licenses;

– At the request of traders, which is approved by competent state management agencies;

– Under decisions of competent state management agencies as a sanction against their violations of law and their licenses;

– The foreign traders are declared bankrupt;

– Foreign traders terminate their operations according to foreign laws, for representative offices, branches or foreign parties to business cooperation contracts with Vietnamese parties;

– Other cases provided for by law.

Before terminating their operations in Vietnam, foreign traders are obliged to pay debts and fulfill other obligations toward the State, concerned organizations and individuals in Vietnam.

2. Documents for termination of operations of foreign traders

– Notice of termination of representative offices or branches signed by the authorized representative of the foreign traders, except in cases the License to establish a Representative Office or Branch is revoked;

– Copy of the document of the Licensing Agency not to renew the License to establish a Representative Office, License to establish a Branch or a copy of the Decision to revoke the License to establish a Representative Office, License to establish a Branch of the Licensing Agency (if any);

– List of creditors and unpaid debts, including tax debt and social insurance payment debt;

– List of employees and their current corresponding benefits;

– Original License to establish a Representative Office, License to establish a Branch.

In addition, other documents may be required by the State agencies such as a commitment to fulfill tax and customs obligations, debt payment plan,…